Volkswagen-owned Audi has paused the delivery of its vehicles that arrived at U.S. ports after April 2, Reuters reported, following President Donald Trump’s imposition of a 25% tariff on imported cars effective April 1.
According to Reuters, the German luxury carmaker is holding these vehicles at ports while it assesses the impact of the new tariffs and plans its next steps. Audi has also informed its U.S. dealers that further shipments will remain on hold until further notice.
A company spokesperson told Reuters that Audi currently has around 37,000 vehicles in its U.S. inventory — sufficient to cover roughly two months of sales.
The tariff is expected to hit Audi particularly hard, given that its best-selling model in the U.S., the Audi Q5, is produced in Mexico. Much of its remaining lineup is imported from Europe and other regions.
Citing industry data from automotive services provider Cox Automotive, Reuters noted that most carmakers in the U.S. typically hold less than three months’ worth of inventory, leaving them little time to adapt to the new trade environment.
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Other carmakers also pause shipments
Audi isn’t the only carmaker taking action in light of the new Trump tariffs. Britain’s Jaguar Land Rover has also suspended exports to the U.S. following the tariff announcement, describing the move as a “short-term” pause while it evaluates the financial impact of the new duty.
Japanese carmaker Nissan has stopped taking orders for its Infinity brand of premium SUVs built in Mexico. Stellantis, the parent company of Jeep and Dodge, has also temporarily suspended production at its Canadian plant near the U.S. border.
Meanwhile, Sports carmaker Lotus has similarly told customers that no more Emira sports cars will be shipped to the U.S. at this point.
Industry faces rising uncertainty
The rushed introduction of the 25% tariff has left global carmakers scrambling to review their supply chains and pricing strategies. While many manufacturers currently have sufficient inventory to sustain short-term sales, long-term solutions remain uncertain.
As reported by Reuters, executives from several major automotive companies are expected to meet with European Commission President Ursula von der Leyen to discuss the situation and possible responses.
The industry faces growing concerns over potential price hikes, supply chain disruptions, and weaker consumer demand in the world’s second-largest car market. It will likely spillover into employment and staff at factories that were manufacturing cars primarily for export to the US market.
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